Displaying items by tag: Roadmap

Belgium: Cembureau, the European Cement Association, has published its new Carbon Neutrality Roadmap, setting out its ambition to reach net zero emissions along the cement and concrete value chain by 2050. The roadmap examines how CO₂ emissions can be reduced at each stage of the value chain – clinker, cement, concrete, construction and (re)carbonation – to achieve zero net emissions by 2050. It quantifies the role of each technology in providing CO₂ emissions savings, making concrete political and technical recommendations to support this objective.

“As Europe begins its green recovery, the significance of this moment for our sector is huge. This is our response to the EU Green Deal – we have a plan and are ready to make the leap.” said Raoul de Parisot, president of Cembureau. The association has identified areas where it says it requires decisive political action from the European Union (EU). These include: the development of a pan-European CO₂ transportation and storage network; action on circular economy to support the use of non-recyclable waste and biomass waste in cement production; policies to reduce European building’s CO₂ footprint, based on a life-cycle approach, that incentivise the market uptake of low-carbon cements; a ‘level’ playing field on carbon, regulatory certainty and an industrial transformation agenda.

Cembureau says it aspires to be in line with the Paris Agreement’s two degrees scenario, reducing CO₂ emissions by 30% for cement and 40% down the value chain. Its chief executive Koen Coppenholle added that, “Carbon neutrality along our full value-chain will be a massive effort, but we are confident we can achieve it. Our sector has made significant progress and, with the right tools and support from the EU, we can go much further.”

EU: The European Council and European Commission have published their joint coronavirus exit strategy, entitled ‘European Roadmap Towards Lifting COVID-19 Containment Measures.’ It advises EU member states on a course of action aimed at restoring community life and the economy, while also preserving public health, after the coronavirus outbreak.

The roadmap consists of a progressive lifting of travel restrictions, initially between border regions, then between regions less affected by the outbreak and subsequently across internal and external borders of the EU. The strategy applies a similar approach to restarting the economy, beginning with ‘essential sectors’ such as construction. The Commission will maintain a rapid alert system for supply chain disruptions, with the help of existing networks such as the Enterprise Europe Network (EEN), Clusters, Chambers of Commerce and trade associations.

Ireland: CRH recorded sales of Euro28.3bn in 2019, up by 6% year-on-year from Euro26.7bn in 2018. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 25% year-on-year to Euro4.20bn from Euro3.36bn. The company said that the results were supported by a positive demand backdrop in the Americas and in key regions in Europe. It also set out a new CO₂ emissions roadmap with target of 520kg/t of cement by 2030, a 33% reduction compared to 1990 levels.

India: Cement producers and the World Business Council for Sustainable Development (WBCSD) have launched the Indian Cement Sector SDG Roadmap. The planning framework uses the United Nation’s (UN) sustainable development goals (SDG) to set a series of goals in energy and climate, people and communities, the circular economy and natural resource management. It is intended to contribute to the UN’s 2030 Agenda for Sustainable Development.

This initiative has been convened by nine cement companies: ACC, Ambuja Cement, CRH, Dalmia Cement (Bharat), Heidelberg Cement, Shree Cement, Orient Cement, UltraTech Cement, Votorantim Cimentos. It is also partially funded by the Swiss Agency for Development and Cooperation (SDC).

Notable goals from the roadmap include promoting railway and waterway transport networks, improving transport safety, increasing the use of blended cements and encouraging the use of alternative fuels. The framework also plans to increase the number of women in the indsutry workforce at every level from entry to board.

India: UltraTech Cement aims to increase contribution of so-called ‘green energy’ to 25% of its total power consumption by 2021 from 10% at present. It also intends to raise its contribution of renewable energy to its total power consumption by five times in the next two years to 2021 to over 10%. By building capacity for renewable power the cement producer intends to become one of the largest users of renewable energy in the Indian cement sector.

In addition to renewable energy, the green energy contribution includes energy generated through waste heat recovery systems (WHR). During its 2019 financial year UltraTech commissioned 28MW of WHR systems to take its total generation from WHR to 8% of total power consumption. Further upgrades are expected to be completed in a phased manner by 2021, taking its WHR share to 15% of its total power requirement.

“To bring the cement sector in line with the Paris Agreement on climate change, UltraTech Cement’s annual emissions will need to fall by at least 16% by 2030. There are a number of solutions for reducing emissions associated with cement production as identified by the latest Low Carbon Technology Roadmap published by International Energy Agency (IEA) in partnership with Cement Sustainability Initiative (CSI). These solutions need to be deployed at scale to meet the decarbonisation challenge,” said K K Maheshwari, the managing director of UltraTech Cement.

UltraTech Cement has set a target to reduce its CO₂ emissions by 25% from its 2005 – 2006 level by 2021. The company is also working on CO₂ reduction strategies including energy efficiency, alternative fuels, WHR, renewable energy and reducing its clinker ratio.

Brazil: The National Union of Cement Industry (SNIC) and the Brazilian Portland Cement Association (ABCP) have launched a Cement Technology Roadmap to 2050. SNIC president Paulo Camillo Penna said that the document would help the local industry cut its carbon footprint in the medium and long term. The roadmap was developed with the International Energy Agency (IEA), the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD), the International Finance Corporation (IFC) of the World Bank and a group of academics led by José Goldemberg.

The roadmap intends to reduce specific CO2 emissions by over 30% to 375kg CO2/t of cement in 2050. Key actions to 2030 include strengthening national and international cooperation, promoting new cement standards, raising the clinker substitution rate, promoting the use of alternative fuels in compliance with the National Policy on Solid Waste (PNRS), sharing best practive in energy efficiency and promoting resaerch and development in new greenohuse has mitigation technologies.

India: A report by the Cement Sustainability Initiative (CSI) shows that the local cement sector is on track to meet its 2030 targets from the low carbon technology roadmap (LCTR). Direct CO₂ emission intensity fell by 5% in 2017 in the Indian cement sector compared to the 2010 baseline. CO₂ emission intensity, including onsite or captive power plant (CPP) power generation, was reduced by 6.8% compared to the 2010 baseline. The alternative fuels thermal substitution rate (TSR) increased by 5 times from 2010 to 2017. The sector consumed more than 1.2Mt of alternative fuels in 2017.

“Sustainability is a journey, not a destination. In our globalised and interconnected world, no one can solve alone the challenges ahead of us and the only opportunity to succeed is through collaborative partnerships, where the common interests of all are considered as more important than the sum of individual interests. This is exactly the spirit that has animated the CSI’s low carbon journey since 1999. This flagship project - with its members - has developed, implemented and shared collective solutions for measuring, reporting and improving its greenhouse gas reduction performance, year after year,” said Philippe Fonta, managing director CSI.

The CSI and the International Energy Agency (IEA) worked with nine local CSI member companies - ACC, Ambuja Cements, CRH, Dalmia Cement (Bharat), HeidelbergCement, Orient Cement, Shree Cement, UltraTech and Votorantim Cimentos - to carry out the status review on the sector’s performance trends, continuous implementation measures and notable achievements based on the milestones set in the 2013 LCTR. The Status Review Report was developed in consultation with Confederation of Indian Industry (CII), with support from International Finance Corporation (IFC) and the Cement Manufacturers Association (CMA).

The findings of the report show that the direct CO₂ emission intensity was reduced by 32kgCO₂/t cement to 588kgCO₂/t cement in 2017 mainly due to an increased use of alternative fuel and blended cement production, coupled with a reduction in clinker replacement factor. However, the study also shows that significant efforts will be needed to meet the 2050 objectives of 40% reduction. The CO₂ emission intensity (including onsite or CPP power generation) has reduced by 49kgCO₂/t cement to 670kgCO₂/t cement in 2017 compared to the baseline year. The report has highlighted the adoption of waste heat recovery (WHR) systems by local cement plants.

The alternative fuels TSR increased to 3% in 2017 from 0.6% in 2010. More than 60 cement plants in India have reported continual usage of alternative fuels, with 24% of the total alternative fuels consumed as biomass. The share of blended cements used in the total quantity of cement manufactured increased to 73% in 2017 from 68% in 2010, largely due to the market’s growing acceptance of blended cement, emerging awareness of sustainability concepts, the availability of fly ash from thermal power plants and the use of advanced technology. The production of Pozzolana Portland Cement grew to 65% in 2017 from 61% in 2010. The share of Portland Slag Cement in cement production remained flat, at less than 10%, over the same period. The clinker factor reduced to 0.71 in 2017 from 0.74 in 2010.

In August 2018 the Global Cement and Concrete Association (GCCA) said it was taking over the work previously done by the CSI from 1 January 2019.

Spain: Oficemen, the Spanish cement association, has released its roadmap for reducing CO₂ emissions to 2050. The document highlights the potential of new technologies, including carbon capture and storage (CCS), which could decrease the CO2 footprint of the Spanish cement industry by up to 80% in 2050. Using existing the technology the association estimates it could reduce emissions by 35% from a 1990 baseline.

Europe: LafargeHolcim has announced its roadmap for the second half of 2015 as it has released the 2015 half-year results for Lafarge and Holcim (click on links to see separate stories).

"We continue to operate in a demanding global market environment and this has affected our first-half performance," said Eric Olsen, CEO of LafargeHolcim. "However, as a new company we have hit the ground running. A team of 200 senior leaders of LafargeHolcim met as early as last week to align on priorities, targets and initiatives to drive the integration process. It is a great team we have on board. We have launched a set of synergy acceleration activities covering areas such as capital expenditure (capex), procurement, cement industrial performance, network optimisation as well as commercial transformation. We expect to see the first tangible results in all areas by the end of 2015."

LafargeHolcim expects to deliver at least Euro93.9m in synergies, impacting earnings until the end of 2015 as part of its programme to achieve Euro1.4bn run rate synergies by the third year of operations. LafargeHolcim has also launched a review of its asset base and the planned capital expenditures for the remainder of 2015. It targets an overall reduction in capex of at least Euro18.8m until the end of 2015, compared to what both companies had planned to spend on a standalone basis. This results in capex of below Euro1.31bn for the second half of 2015. In parallel, the company has also launched a portfolio review for further optimisation.

Further, LafargeHolcim has defined capital allocation discipline as a key focus area with a view to reduce capex and maximise cash generation and returns for shareholders. As a first step, LafargeHolcim has decided on a progressive dividend policy, starting at least at Euro1.22/share for the financial year 2015, subject to approval at the Annual General Meeting in 2016. This will apply to all shares, including the new shares to be awarded to shareholders as a scrip dividend of one share per 20 shares held that was announced in March 2015. This scrip dividend is now expected to be issued on 8 September 2015.

LafargeHolcim expects net proceeds of around Euro5.63bn by the end of 2015 from divestments that will be used to reduce debt, supporting a solid financial structure. This would lead to a net debt below Euro14.1bn by the end of 2015, prior to the fair value adjustment on the Lafarge debt and a potential squeeze-out of Lafarge.